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protectionUpdated 2026-03-31

Is a Single-Member LLC Protected in Georgia?

Yes. A single-member LLC in Georgia provides liability protection under O.C.G.A. Title 14, Chapter 11. The member is not personally liable for the LLC's debts, contracts, or obligations. Creditors cannot pursue the member's personal assets to satisfy business liabilities. This protection applies equally to single-member and multi-member LLCs, provided the LLC maintains separate legal status.

How Protection Works

Georgia law treats a single-member LLC as a separate legal entity. Under O.C.G.A. § 14-11-303, members are not personally liable for LLC debts or obligations solely by virtue of membership. The LLC's creditors can pursue only LLC assets, not the member's personal bank accounts, home, or other individual property.

When Protection Does Not Apply

Personal guarantees. If you personally guarantee a loan or contract, you become directly liable regardless of LLC status.

Fraud or illegal conduct. You remain personally liable for your own wrongful acts, including fraud, negligence, or criminal violations.

Piercing the corporate veil. Courts may disregard the LLC's liability shield if you fail to maintain it as a separate entity—commingling personal and business funds, ignoring formalities, or using the LLC fraudulently.

Employment tax obligations. You may be personally liable for unpaid employment taxes under federal law.

Charging Order Protection

Georgia provides standard charging order protection under O.C.G.A. § 14-11-504. If a creditor obtains a judgment against you personally, their remedy is limited to a charging order against your LLC distributions. Creditors cannot seize LLC assets or force dissolution.

Maintaining Protection

Keep business and personal finances separate. Open a dedicated business bank account and never comingle funds. File annual reports on time. While Georgia does not require a written operating agreement (O.C.G.A. § 14-11-203), creating one strengthens liability protection by documenting the LLC's separate governance and management.

Next Steps

  1. File Articles of Organization with the Georgia Secretary of State
  2. Obtain an EIN from the IRS
  3. Create a written operating agreement (recommended)
  4. Open a separate business bank account
  5. Maintain annual compliance filings

This is general information, not legal advice. Consult a Georgia business attorney for your specific situation.